PART 3--TIME SCHEDULE/COURSE OUTLINE

TIME SCHEDULE

PART 3--COURSE OUTLINE

I. An overview of nonqualified plans

A. The allure of the nonqualified market

• Provide comprehensive services
• Meet needs of upscale clients
• Offer marketing opportunity for unusual and annuity products

B. Problem solving with nonqualified plans

• Supplement qualified plan benefits
• Avoid qualified plan regulations
• Provide benefits in excess of qualified plan Sec. 415 limitation
• Provide special executive compensation packages
• Provide tax benefits for business owners
• Meet employer's compensation planning goals

II. When to consider nonqualified deferred compensation

III. Choosing the best nonqualified plan

A. The nonqualified versus the qualified market

B. Types of nonqualified plans

1. Excess-benefit plans

2. Top-hat plans

3. Supplemental executive-retirement plans

4. 457 plans

IV. Design considerations

A. Forfeiture provisions

1. Client problem: successful transition in company leadership

2. Client problem: retention of executives

3. Client problem: competition from former employees

B. Designing a nonqualified plan for executives  

C. Other features in plan design

1. Benefit or contribution structure

2. Eligibility

3. Disability provisions

4. Retirement age

5. Death benefits

V. Executive-bonus life insurance plans

A. Nonretirement applications

B. Implementation of Sec. 162 plans

C. Double-bonus plans

VI. Nonqualified versus qualified plans

A. Case study

1. Determining the cost of deferring the deduction

B. Tax considerations

1. Constructive receipt

2. Economic benefit

3. Section 83

VII. Plan funding

A. Funded plans

B. Unfunded plans

C. Informally funded plans

D. Income tax effects on the employer

E. Rabbi trusts

1. Unique uses for rabbi trusts

2. A final word on rabbi trusts

F. Secular trusts

1. How secular trusts work

2. The employer's perspective

3. The executive's perspective

G. Surety bonds

H. ERISA considerations

I. "Funding" nonqualified plans with life insurance

1. Advantages of COLI

2. Disadvantages of COLI

VIII. Installation and administration of nonqualified plans